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Bankers About Banl
ALINE BANK SUPPORTED OLLOWING a run on the Bank of Aline, recently, operations of the bank were suspended temporarily, the officials having decided not to resume business until assured that customers would not start another run. While the doors were not closed, no money was being paid out nor deposits received. An official of the state banking department found the bank in good condition, and after a few days suspension, operations were resumed. In this interval, pledges were obtained from more than 90 per cent of the depositors, not to withdraw their deposits. the run which threatened the security of the bank was caused by rumors which had been current for some days, that the bank was closely connected with another institution which was known to be in financial difficulties. The Alva Review Courier comments on the handling of this emergency, with praise for the banking department, as follows:
A real and apparently honest effort is being made by the state banking department to save the bank at Aline. It is a very commendable effort and the department should receive the hearty co-operation of the depositors of the institution and of the people of the Aline community. In the past the policy of the banking departments, not only of Oklahoma, but of other states and of the nation has been entirely too cut and dried. In hundreds of cases sympathetic working out of the problems of the troubled bank in a manner similar to the Aline case would have saved depositors every cent of their deposits. A policy of requiring banks to be absolutely liquid-meaning that all notes can be collected on their due date-dões not work in such times as these-in fact never has worked. If a bank has paid as much as fifty per cent under a receivership, it would have paid in full under careful and supervised control of the banker.
We commend the banking department for their efforts to keep the bank open and predict that with co-operation on the part of the community the bank will be saved. Certainly the matter is being handled in the right manner.
MORTGAGE NOT PRIOR LIEN RECENT suit in district court at DunA can brought the ruling that taxes are a lien prior to a mortgage, on chattels, and last week the First National Bank of Comanche failed in its suit for injunction to prevent the sheriff from selling for taxes, livestock on which the bank held a mortgage. The bank is expected to appeal the decision to the Supreme Court.
BANK CLOSED
THE Farmers and Merchants Bank of Crescent was closed last week, with the state banking department taking charge. Farm loans which could not readily be liquidated were given as the cause for the bank's trou- ble. It is considered, however, that a high per cent of the loans are collectible, and that there will be little or no loss to deposi- tors when the bank is liquidated.
